Rather than treating price as 'table stakes', retailers have instead engaged in a new 'race to the bottom.'
Miami, FL (PRWEB) April 11, 2012
Retail Systems Research, LLC has released its findings from its 2012 Benchmark Report, "Retail Pricing in a Post-Channel World: Benchmark 2012". The report, based on a survey of 70 retailers on their pricing challenges, opportunities, and technology adoption plans, found that retailers continue to struggle with consumer price sensitivity and an increasing number of promotions, complicated by cross-channel transparency. The research is available for free download (registration required).
"Retailers have opted to become more promotion-oriented than ever. Rather than treating price as 'table stakes', retailers have instead engaged in a new 'race to the bottom," report Nikki Baird and Paula Rosenblum, RSR Managing Partners and the report's authors. "Few of our retail respondents characterize their pricing strategy as 'hyper-promotional,' but they continue to ramp up the number of price changes they send to stores and other channels."
Key Findings include:
- 34% of respondents report that their zone pricing plans have been damaged by consumer price transparency and 21% report that they have returned to one price across channels - twice as many respondents as in 2011.
- Forty percent of retail respondents, down just slightly from 2011, still report that they “haven’t seen it yet” in response to questions about show rooming.
- 41% of retailers report they are not able to execute at the level of granularity that pricing solutions provide, a three-fold increase over 2011.
- Retailer's highest investment priorities for 2012-13 include markdown planning and forecasting, followed by end-to-end pricing lifecycle management.
"Retail Pricing in a Post-Channel World: Benchmark 2012" contains analysis of the business drivers, opportunities, and organizational constraints surrounding retail price strategies. It also offers up baseline recommendations for successful price planning and management. The report is part of RSR Research's ongoing efforts to provide market intelligence on retail technology trends, is sponsored by Predictix and Revionics, and can be downloaded here:
About RSR Research: Retail Systems Research (“RSR”) is the only research company run by retailers for the retail industry. RSR provides insight into business and technology challenges facing the extended retail industry, and thought leadership and advice on navigating these challenges for specific companies and the industry at large. RSR’s services include benchmark reports covering the state of retailer technology adoption for topics ranging from merchandising and supply chain, store operations and workforce management, to customer-facing and multi-channel technologies. Custom research reports provide more in-depth views into topics of industry interest, and advisory services help retailers and technology vendors make the most of the insights RSR provides. To learn more about RSR, visit http://www.rsrresearch.com.